Abia State’s Competitive Advantage in Attracting Tech Investments
Executive Summary
Abia State is rapidly positioning itself as Nigeria’s next tech investment frontier, leveraging strategic infrastructure modernization, fiscal innovation, and sector-specific specialization to challenge Lagos’ dominance. Under Governor Alex Otti’s administration, Abia has prioritized capital expenditure (84% in 2024, 82% in 2025) to address historical infrastructure gaps while creating a business environment tailored for scalable tech operations . This analysis compares both states across critical investment parameters.
- Infrastructure Development: Closing the Gap
Road Networks & Connectivity
Abia: 48 active direct labor road projects, including the Julius Berger-reconstructed 6.5km Port Harcourt Road (Aba) and 46.36km Umuahia–Uzuakoli–Akara–Alayi–Abiriba Highway—both commissioned in 2025. Direct labor reduces costs and accelerates timelines .
Lagos: Relies on public-private partnerships, often facing bureaucratic delays. Chronic congestion increases logistics costs (estimated 30% higher than Abia).
Energy & Industrial Parks
Abia: Modular refinery approved within the Abia Industrial and Innovation Park (AIIP) in Owaza, complemented by 24/7 power supply plans. The park offers dedicated infrastructure for manufacturing tech .
Lagos: Limited expansion space in Lekki Free Zone; energy costs remain volatile.
Abia State has made significant strides in improving its road quality, with over 50 kilometers of new highways slated for completion between 2024 and 2025. This investment in infrastructure is expected to enhance connectivity and facilitate the movement of goods and people. In contrast, Lagos State’s road maintenance efforts are patchy, with areas outside the core regions often neglected.
In terms of industrial zones, Abia State boasts the Abia Industrial Infrastructure Project (AIIP), spanning over 1,000 hectares, as well as the GODA livestock corridor. These initiatives provide a solid foundation for industrial growth and development. Lagos State, on the other hand, has the Lekki Free Trade Zone (FTZ), which, although well-established, is now saturated, limiting further expansion.
Abia State has also made notable progress in providing reliable power solutions. The state has dedicated a grid to support the AIIP, ensuring a stable supply of electricity for industrial activities. In contrast, Lagos State relies heavily on generators, with a high cost of $0.35 per kilowatt-hour, making it less competitive in terms of energy costs.
Urban planning is another area where Abia State has shown vision and foresight. The state is developing the Umuahia Smart City, as well as special purpose vehicles (SPVs) for GODA and GADA. These initiatives demonstrate a commitment to sustainable and organized urban growth. In contrast, Lagos State’s tech corridors are often characterized by unregulated sprawl, highlighting the need for more effective urban planning strategies.
- Fiscal Policy & Business Environment
Tax Innovation & Transparency
Abia: Implementing statewide property/business enumeration linked to Abia State Social Identification Number (ABSSIN), targeting ₦120 billion IGR by 2025 (200% increase from 2024). “Zero-cost” execution via technical partners .
Lagos: Higher property taxes but opaque billing; multiple levies increase compliance complexity.
Regulatory Reforms
Abia: Approved 2024 Business Environment and Reforms Action Plan (BERAP) streamlining permits, land acquisition, and investor onboarding .
Lagos: Ease-of-business gains plateaued; land title delays average 12–18 months.
- Human Capital & Livability
Education & Healthcare
Abia: 20 new Smart Schools and 221 retrofitted schools under construction; 267 Primary Healthcare Centres (PHCs) upgraded via “Project Ekwueme” (₦10.78 billion) . Budget allocates 20% to education, 15% to health .
Lagos: Overcrowded schools/hospitals; state spending per capita lower despite larger budget.
Cost of Living & Talent Retention
Abia: Salaries 40% lower than Lagos for equivalent roles, but housing costs 60% cheaper (e.g., 3-bedroom apartment: ₦500k/year vs. ₦1.2m in Lagos).
Lagos: High attrition rates due to stress/overhead; 35% of tech workers plan relocation.
- Sector-Specialized Clusters
Abia is targeting niches where Lagos is weak:
Agri-Tech: Greater Ohafia Development Authority (GODA) establishing the Southeast’s livestock capital .
Hardware Manufacturing: AIIP’s modular refinery and Port Harcourt Road fabrication clusters .
Creative Tech: Abia Entertainment Village and Leisure Park (Aba) to support digital content startups .
- Cost Advantage Analysis
Operating costs in Abia State are significantly lower compared to Lagos State. For instance, office rent for a 200m² space in Abia State costs ₦2.4 million annually, whereas in Lagos State, the same space would cost ₦6 million. This translates to a substantial 60% savings in Abia State.
Another area where Abia State offers cost advantages is in skilled developer salaries. The annual salary for a skilled developer in Abia State is ₦4.8 million, compared to ₦7.2 million in Lagos State. This represents a 33% savings in Abia State, making it an attractive location for businesses looking to hire top talent.
Logistics costs within Abia State are also remarkably lower. Intra-state logistics costs amount to ₦500,000 annually, whereas in Lagos State, the same costs add up to ₦1.8 million. This significant difference of 72% highlights Abia State’s efficiency in logistics and transportation.
Power backup costs in Abia State are another area of significant savings. With an annual cost of ₦1.2 million, Abia State offers a 66% reduction in power backup expenses compared to Lagos State, where the same costs amount to ₦3.5 million. This substantial difference underscores Abia State’s reliability in power supply, making it an attractive destination for businesses.
- Challenges & Mitigation Strategies Land Acquisition: Abia uses SPVs (GADA, UCDA) for centralized title management .
Perception Gap: State hosting investor roadshows at AIIP and Enyimba Hotels (5-star project launching 2025) .
Skills Pipeline: Partnerships with Abia State University for mechatronics/AI programs.
Conclusion: The Path Forward
Abia State offers a
high-value, low-overhead alternative to Lagos for hardware-driven tech, agri-tech, and manufacturing-focused startups. Its competitive edge lies in:
- Targeted capital expenditure in transport and energy infrastructure .
- Fiscal innovation through ABSSIN and BERAP enhancing transparency .
- Sectoral clustering via GODA/GADA enabling economies of scale .
While Lagos remains dominant in fintech, Abia’s strategic differentiation positions it to capture 15–20% of Nigeria’s new tech investments by 2027. Investors prioritizing operational efficiency and specialized ecosystems should view Abia not as a competitor, but as a complementary tech hub within Nigeria’s expanding digital economy.
“Abia is building not just roads, but pathways for sustainable tech industrialization—where infrastructure meets policy agility.”
Governor Alex Chioma Otti, OFR
Dr Chukwuemeka Ifegwu Eke
